Crowds at Sydney auctions are growing as the market shows signs of improvement for the second week in a row.
Agents and experts reported big sales on homes at the weekend, with savvy buyers looking to buy a bigger home at a better price. But, units in some suburbs struggled to sell due to a lack of investors.
Sydney’s preliminary clearance rate of 66 per cent is expected to be revised to about 60 per cent by the end of the week. This makes them the best results for the year so far.
Overall in Sydney, May clearance rates sat at an average of 55.5 per cent – the highest point since March 2018.
Domain economist Trent Wiltshire said the results were a sign the Sydney market could be close to a turning point.
“Clearance rates are now at their highest point in over a year, and other signs also point to renewed buyer interest – more people are attending open for inspections and auctions and more people are inquiring about home loans,” Mr Wiltshire said.
21 Holmesdale Street, Marrickville
“Although some headwinds remain, notably a sluggish economy and tighter lending conditions, most indicators point towards Sydney house price falls ending this year,” he said.
LJ Hooker auctioneer Ben Mitchell said it was another “cracking weekend” of sales with properties selling above reserves and more than 20 registered bidders at two auctions.
“It felt like two years ago,” Mitchell said. “The buyer confidence was definitely there.”
The auction of 21 Holmesdale Street, Marrickville, which sold under the hammer for $1.575 million, had 22 registered bidders on Saturday.
The three-bedroom, one-bathroom property, which backs on to Henson Park, the birthplace of the Newtown Jets, reached a price $300,000 above reserve.
“It was the first time it had come on to the market in more than 40 years,” Mitchell said.
He said the buyer was planning to turn the house into two duplexes.
Another home in Baulkham Hills, which Mr Mitchell sold on behalf of Manor Real Estate, had more than 20 registered bidders and went above reserve by $165,000.
The three-bedroom home at 18 Boonal Street sold for $1,264,500.
18 Boonal Street, Baulkham Hills
Ray White auctioneer Alex Pattaro said while houses were selling well, units were not as hot, with three of the four he had up for auction at the weekend not selling.
Pattaro said investors were still not back in the market and buyers, though keen to bid, were still waiting for finance before making an offer.
“The market is primarily owner-occupiers,” Pattaro said.
Despite the units not selling at auction, he said he was confident they would sell in the next couple of weeks because there was strong buyer interest.
The three-bedroom apartment that did sell under the hammer, at 915/3 Gearin Alley, Mascot, was bought by first-home buyers for $950,000. The price was just below the reserve.
915/3 Gearin Alley, Mascot
In contrast, a terrace house at 211 Bridge Road, Glebe, sold with four registered bidders fighting it out on Saturday afternoon. The four-bedroom, two-bathroom, property sold for $1.95 million.
McGrath Willoughby’s John McManus said buyers were looking to upsize their homes while prices were lower.
Buyers were taking opportunities to get a bigger property at a better price, or to buy into a smaller house from a unit.
“The gap in price has narrowed quite a lot,” McManus said.
McGrath had two big sales on the weekend, including a three-bedroom home at 47 Marlborough Road, Willoughby.
A crowd of about 100 gathered for the auction of the property which sold for $2,271,500. A man looking to downsize was the winning bidder.
63 Stafford Road, Artarmon
The other big auction of the day was for a four-bedroom home at 63 Stafford Road, Artarmon.
About 80 people witnessed two bidders push the price well above the expected result by more than $500,000. The home sold for $2.86 million to a local family looking to stay in the area.
“It’s pretty positive, the past two weeks is the best we’ve seen in quite some time,” McManus said.
article by domain.com.au